REPORT: Part Of JP Morgan's $13 Billion Deal With The Justice Department Is At Risk Of Collapse; Shares Down

The Wall Street Journal's Devlin Barrett is
reporting part of JP Morgan's $13 billion deal with the
Justice Department is at risk of collapsing.

Shares were down as much as -0.70%.

Barrett:

"A key sticking point is whether J.P. Morgan or the Federal
Deposit Insurance Corp. bears ultimate responsibility for
liabilities linked to Washington
Mutual which J.P. Morgan acquired during the financial
crisis, said people close to the talks. On Sunday night, lawyers
for the bank also offered a proposed deal that could give the
bank extra legal protection from criminal probes—something the
Justice Department leadership isn't willing to accept, these
people said."

Early reports of the settlement focused on settling issues
related to allegedly faulty mortgage backed securities issued by
Bear Stearns and Washington Mutual, which JPM purchased at the
height of the financial crisis.

But there had also been disagreements about how Justice would
move forward on an ongoing criminal investigation into a JP
Morgan mortgage unit in California.